Telecommunication giant MTN Nigeria Limited has intensified efforts at frustrating the execution of N45.5 million judgment entered against it by a Lagos High Court in favour of one of its contractors, Procomtel Limited
It has filed a motion seeking to stay further proceedings in the suit pending the determination of its application before the Court of Appeal, for leave to appeal the judgment.
The motion, to be heard on Tuesday, was filed few days after the court, presided over by Justice K. A. Jose, dismissed three similar applications earlier brought by the telecom company. The court held that they were incompetent.
The judgment given in May this year was upon an application by Procomtel, for an order entering judgment against MTN upon its (MTN’s) admission in its pleadings that it owed Procomtel N85,463,577.64.
MTN had sued Procomtel, alleging among others, breach of contract, a suit against which Procomtel counter-claimed and prayed the court to enter judgment in its favour.
At the pre-trial conference stage, Procomtel, relying on Order 19 Rule 4 of the court’s rules, applied that judgment be given against MTN on the ground that it (MTN) admitted in paragraphs 12 and 13 of its statement of claim that it owed the contractor N85,463,577.64.
MTN opposed the application, arguing that Procomtel owed it N48, 486,953.73 which, if set-off against the N45, 592,425.20 it owed Procomtel, the company would still need to pay it a balance of N2, 849,528.53.
Ruling on the application on May 31, Justice Jose upheld Procomtel’s argument that by virtue of Order 17 Rule 6 of the court’s rule, it was only a defendant who could raise a right of set-off in his defence and not a claimant.
“The claimant’s (MTN’s) averment in its statement of claim, that it is setting off its liability to the defendant against the defendant’s (Procomtel’s) liability does not have any basis in law,” the court held.
In awarding N45, 592,425.20 against MTN, the court held that though Procomtel asked for judgment of N85,463,577.64 “on the premise that by simple arithmetic of addition and subtraction, this is the amount admitted,” it could only enter judgment in the amount that was “clearly and unequivocally admitted.”
Following the ruling and upon an application by Procomtel, the court attached MTN’s account in Diamond Bank Plc and ordered the bank to among others, show cause why it should not be compelled to pay Procomtel the judgment sum from the said MTN’s account numbered: 0006065936.
Taken from:
MTN stalls execution of N45.5m judgment